SOUTH AFRICAN CHROME AND ALLOYS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
("SAChrome" or "the company")
RESULTS OF THE SPECIFIC ISSUE OF SHARES FOR CASH; AND THE INTRODUCTION OF THE
ROYAL BAFOKENG NATION AS A STRATEGIC PARTNER
1. GENERAL
Further to the announcement dated 16 January 2001, the company wishes to
announce the results of the specific issue of shares for cash ("the cash
issue") required to fund the R350 million equity contribution towards the
establishment of a 235 000 tonnes per annum ferrochrome facility.
SA Chrome has received commitments from strategic partners and financial
institutions totalling R350 million, for all 777 777 778 new ordinary shares at
an issue price of 45 cents each.
2. STRATEGIC PARTNERS
The Industrial Development Corporation of South Africa ("the IDC") have agreed
to subscribe for R100 million in terms of the cash issue.
As a result of the overwhelming demand for shares in terms of the cash issue,
Thyssen Rheinstahl Technik ("Thyssen") have agreed to reduce their commitment,
in terms of their engagement under the National Industry Participation
Programme, from R100 million to R70 million. This should ensure increased
liquidity and tradability of the SA Chrome shares.
The company welcomes both the IDC and Thyssen as shareholders and strategic
partners in their ferrochrome project.
The company also welcomes the Royal Bafokeng Nation ("the RBN") which has
agreed to subscribe for R100 million in terms of the cash issue. The RBN is a
Universitas Personarum, a legal association whose 300 000 members live
predominantly in the Rustenberg/Pilanesberg area.
The R100 million investment by the RBN is part of their continuing efforts to
diversify their income base. The Royal Bafokeng Nation hold rights to
considerable mineral reserves in the Rustenburg area, including substantial
chromite reserves. The RBN chromite reserves are located near Boshoek, which is
adjacent to the proposed site of SA Chrome's ferrochrome smelter.
The RBN have commenced a feasibility study on their open-castable chromite
reserves, which will include an extensive drilling program, with a view to
bringing these reserves to account in the near future. The reserves are
adjacent to the SAChrome ferrochrome facility.
The RBN is committed to maximising returns on their ore reserves. The directors
of SA Chrome believe that the introduction of the RBN as a strategic partner
and shareholder will lead to improved future prospects for the company.
3. SHAREHOLDERS
The shareholding in the company after the cash issue is as follows:
Name of investor Shares received Shares held Percentage
in terms of after the holding after
the cash issue cash issue the cash issue
Industrial
Development
Corporation of
South Africa
Limited 222 222 222 244 949 495 24,5
The Royal
Bafokeng Nation 222 222 222 222 222 222 22,2
Thyssen Rheinstahl
Technik 155 555 556 155 555 556 15,6
Others 177 777 778 376 577 568 37,7
Total 777 777 778 999 304 841 100
4. LISTING OF THE NEW SHARES
Pursuant to the cash issue, the JSE Securities Exchange South Africa has
approved the listing of 777 777 778 new ordinary shares with effect from
Monday, 5 March 2001.
Johannesburg
Tuesday, 27 February 2001
Corporate adviser
The Corner House (Pty) Ltd
(Registration number 1997/008185/07)
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
